Ensign Group (ENSG) Pursues Facility Buyouts in South Carolina
The Ensign Group, Inc. ENSG recently purchased the operations of two skilled nursing facilities in South Carolina. The transactions, which are subject to a long-term, triple net lease, were effective since September 1 of this year.
The first facility named Ashley River Healthcare is equipped with 125 beds and is situated in the Charleston city of South Carolina. Meanwhile, the second one, which is located in Hanahan city of the state, comprises 135 beds and is named The Reserve Healthcare and Rehabilitation.
The recent move enables Ensign Group to work closely with the team of caregivers at each of the acquired facilities. This, in turn, equips the clinical and operational squad of ENSG to gain in-depth knowledge about the local communities, which prove to be of great use in bringing about better health outcomes.
Such acquisitions are also a means to solidify the healthcare portfolio of Ensign Group, upgrade capabilities as well as strengthen its U.S. foothold. The latest acquisition takes its portfolio’s healthcare operations count to 295 spanning across 13 U.S. states, out of which 26 can also be listed as senior living operations. Subsidiaries of ENSG (which also involve Standard Bearer) presently own 112 real-estate assets.
Increasing the count of skilled nursing facilities within its portfolio may boost the revenues of the Skilled Services segment, which is the most significant contributor to its overall revenues. The unit provides skilled nursing and senior living services, physical, occupational and speech therapies as well as other rehabilitative and healthcare services.
Ensign Group follows an aggressive inorganic growth strategy and multiple buyouts pursued throughout the year bear testament to this fact. Management keeps an eye on detecting opportunistic real-estate buyouts. It also aims to lease solid and struggling skilled nursing, assisted living and other healthcare-linked businesses across the United States.
This August, Ensign Group purchased the real estate and operations of two skilled nursing facilities, Belmont Terrace and Puget Sound Transitional Care, in Washington. Simultaneously, it also acquired the real estate of a post-acute care retirement campus situated in the state, which is equipped with licensed skilled nursing beds and independent living units. On the very same day, ENSG also purchased the real estate and operations of a skilled nursing facility named Rehabilitation and Nursing Center of the Rockies in Colorado.
Shares of Ensign Group have gained 1.5% in the past three months against the industry’s 9.3% decline. ENSG currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Medical space are Surgery Partners, Inc. SGRY, ANI Pharmaceuticals, Inc. ANIP and Medpace Holdings, Inc. MEDP. While Surgery Partners sports a Zacks Rank #1 (Strong Buy), ANI Pharmaceuticals and Medpace carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Surgery Partners’ earnings surpassed estimates in three of the last four quarters and missed the mark once, the average beat being 269.64%. The Zacks Consensus Estimate for SGRY’s 2023 earnings is pegged at 73 cents per share, which indicates an increase of nearly five-fold from the year-ago reported figure. The consensus mark for revenues indicates growth of 8.7% from the year-ago reported figure. The consensus mark for SGRY’s 2023 earnings has moved 2.8% north in the past seven days.
The bottom line of ANI Pharmaceuticals outpaced estimates in each of the trailing four quarters, the average surprise being 91.56%. The Zacks Consensus Estimate for ANIP’s 2023 earnings is pegged at $3.73 per share, which indicates an increase of nearly three-fold from the year-ago reported figure. The consensus mark for ANIP’s 2023 earnings has moved 10% north in the past 30 days.
Medpace’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.28%. The Zacks Consensus Estimate for MEDP’s 2023 earnings indicates a rise of 15.3% from the year-ago reported figure. The consensus mark for revenues suggests an improvement of 27.8% from the year-ago reported figure. The consensus mark for MEDP’s 2023 earnings has moved 2.1% north in the past 30 days.
Shares of ANI Pharmaceuticals and Medpace have gained 25.6% and 19.2%, respectively, in the past three months. However, the Surgery Partners stock has declined 10.7% in the same time frame.
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